Rapid Insights PresentationV3

Rapid InsightsJ u n e 2 0 1 6

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www.nvcltd.com.au 2

Except for historical information, there may be matters in this presentation that are forward-looking statements. Such statements are based on management figures and are

estimates only. Forward-looking statements, which are based on assumptions and estimates and describe the Company’s future plans, strategies, and expectations are generally

identifiable by the use of the words ‘anticipate’, ‘will’, ‘believe’, ‘estimate’, ‘plan’, ‘expect’, ‘intend’, ‘seek’, or similar expressions. Investors should not to place undue reliance on

forward-looking statements. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties both general and specific. There can be

no guarantee that such estimates, forecasts, projections and other forward-looking statements will eventuate. Those risks and uncertainties include factors and risks specific to

the Company and the industry in which the Company operates, as well as general economic conditions and prevailing exchange rates and interest rates. Each of the risks, if it

eventuates, may have a material adverse impact on the Company’s operating performance and profits, and the market price of its Shares. Actual performance or events may be

materially different from those expressed or implied in those statements.

All forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by this section.

Except as expressly required by law, the Company has no obligation to publicly update or revise any forward-looking statements provided in this publication whether as a result

of new information, future events or otherwise, or the risks affecting this information. None of the Company, its officers or any person named in this publication with their

consent, or any person involved in the preparation of this publication, makes any representation or warranty (express or implied) as to the accuracy or likelihood of fulfilment of

any forward-looking statement except to the extent required by law. The forward-looking statements reflect the views held only as at the date of this presentation.

Important Notice and Disclaimer

Future Statements

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Presenting TodayW H O Y O U A R E W I T H T O D A Y

Tomas SteenackersManaging Director and Chief Executive Officer

Tomas is the Managing Director of NVC. Tomas has over 10 years of experience as an executive in the

veterinary and healthcare sector including Senior Management roles with Mayne Pharma, Hospira,

Covidien, and Terry White Management. Prior to joining NVC, Tomas was General Manager Specialty,

Emergency & Pathology at Greencross Limited.

Katherine BakerChief Financial Officer and Company Secretary

Katherine is the CFO and Company Secretary of NVC. Katherine is an experienced Chartered Accountant

with over 12 years’ experience in finance. Katherine spent 7 years in Chartered Accounting advising

small and medium enterprises in tax and financial matters before moving into the veterinary sector.

Prior to NVC, Katherine spent 5 years as Financial Controller at Greencross Limited.

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AgendaK E Y P O I N T S T O B E C O V E R E D

1. Operational Highlights

2. Business Snapshot

3. Operational Update

4. Market Overview

5. Strategic Update

6. Appendices

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Operational Highlights

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FY2016 Operational HighlightsO P E R A T I O N A L H I G H L I G H T S

Share Price Performance

Operational Highlights

IPO • Successfully completed IPO in August 2015

Integration of initial

portfolio• 34 clinics settled from the Initial Portfolio between 5 August 2015

and 30 September 2015

• Whites Hill Vet Clinic settled in October 2015

• Zillmere Vet Surgery settled in March 2016• Everton Park Veterinary Surgery settled in April 206

• Gatton Veterinary Surgery settled in May 2016

• Introduced Management Services and Procurement Group (Complete

Vet Systems) in May 2016

Implementation of

initiative(s)• Launched the Wellness Program on 1st November 2015

Strong FY20116 Half Year

Results• Underlying EBITDA Margin 16.34% (adjusted for MI).

• Net Debt - $12.4mill

• Operating Cash flow conversion rate from EBITDA (excl acquisition

costs) 173%

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Business Snapshot

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Business SnapshotB U S I N E S S S N A P S H O T

• NVL is a provider of veterinary services to companion

animals in Australia

• 39 businesses (see map over the page)

• 35 general practices clinic

• 4 business-to-business operations

• Introduced Management Services and Procurement Group

(Complete Vet Systems)

• Group has a combined 167 veterinary surgeons

29Support Office Staff

194Nurses

25Practice Managers

33Attendants/Groomers/Other

Numbers of

Current Staff Total: 472

24Reception/Admin

167Vet Surgeons

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Geographic ClustersC U R R E N T P O R T F O L I O

More than half of the current portfolio of Clinics are located in geographic clusters

QLD

NSW

VIC

16

4

13

4

2

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Operational Update

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Operational UpdateO P E R A T I O N A L U P D A T E

• The management office is now located within the training

facility (Centre of Excellence) located in Ormeau, QLD

• The Centre of Excellence has been operational since March

2016 with training workshops attended by both NVC and non

NVC employees

Training Facility

• Finalised supplier agreements in August and September 2015

• All agreements were signed in October and will be retrospective

from August 2015

• The majority of the suppliers have also committed to invest

funds to help develop the Centre of Excellence

Supplier Agreements

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Best for Pet – NVC Wellness ProgramO P E R A T I O N A L U P D A T E

0

250

500

750

1000

1250

1500

1750

2000

2250

2500

2750

3000

3250

3500

3750

4000

November December January February March April May

Membership Acquisition

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

Pascoe Vale

Veterinary Hospital

Brunswick Central

Veterinary Clinic

Essendon

Veterinary Clinic

The Blackburn Vet

% of All Active

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MilestonesK E Y A C H I E V E M E N T S

Successfully completed IPO and listed on the ASX with a portfolio of 35 practices

Au

g-1

5

Oct

-14

CEO commenced

First clinic acquisition after the initial portfolio - Whites Hill Vet in Brisbane

Launched the Wellness Program -Best for Pet

Centre of Excellence Training Academy opened

Management team in place - CEO, CFO and General Manager of Operations

Jan

-15

Oct

-15

No

v-1

5

De

c-1

5

Ma

r-1

6

Established suppliers agreements with wholesalers and manufacturers

Moved into Support Office in Queensland

Development and

deployment of benchmarking system

for 60 key clinical

performance indicators

Launched Appointment Bookings Online

Launched Net Promoter Score Surveys

Introduction of Management Services and Procurement Group

Se

p-1

5

Oct

-15

No

v 1

5

Jan

-16

Ap

r-1

6

3 new clinic acquisitions in QLD settled

Ma

r-M

ay

-16

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Market Overview

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Industry SnapshotM A R K E T O V E R V I E W

39%

29%

15% 13%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

2

4

6

8

10

12

Millions of pets % of households owning pets

Australian Pet Ownership

38%Pet Food

15%Other Pet Care Services

8%Products and Accessories

4%Pet Purchases

2%Other Expenditure

Australian Pet Industry

($8.0bn)

12%Healthcare Products

21%Veterinary Services

Mil

lio

ns

of

pe

ts

% o

f h

ou

seh

old

s o

wn

ing

pe

ts

The overall pet industry in Australia was estimated to be worth

$8bn in 2013, with NVC’s addressable market estimated at $2.9bn

Approximately 69% of veterinary services relates to dogs, 27%

relates to cats

Key reason for owning a pet is companionship

‘Humanisation trend’ means demand for veterinary services tends

to be steady from year to year

Management estimates the pet industry to grow at low single digit

percentages over the next five years

Growth opportunities exist in advanced surgical and diagnostic

procedures

Dogs Cats Fish Birds Other Pets

Source: Animal Health Alliance (Pet Ownership in Australia 2013)

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Veterinary IndustryM A R K E T O V E R V I E W

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

100

200

300

400

500

600

700

800

Male Female % Female

Registered Veterinarians in NSW

NS

W R

eg

iste

red

Ve

ts (

20

12

)

Age Bracket <30 30-<40 40-<50 50-<60 60+

Highly fragmented market

Note market share by revenue likely to be higher than market

share by number of practices

Increasing female veterinary graduates, was 65% ten years ago,

now as high as 85%

Supply of veterinarians driven by increasing graduate numbers,

from average of 229 per year between 1995 and 1999 to 463 per

year between 2008 and 2011

Increasing enrolments at existing schools, as well as four new

university courses (up from four previously) with first students

graduating from these new courses between 2010 and 2013

Source: NVC Management Estimates, The Australian Veterinary Association (Australian veterinary workforce survey 2013 – May 2014)

Estimated Market Share (number of practices)

5.2%Greencross: 130 Clinics

1.5%Aust. Vet Owners League:39 Clinics

1.5%NVC: 39 Clinics

0.6%Vet West: 17 Clinics

1.4%2 Operators (with more than

10 Clinics): 35 Clinics

89.5%Other: 2,232 Clinics

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Strategic Update

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Growth StrategyS T R A T E G I C U P D A T E

� Significant opportunity for further industry

consolidation in the veterinary services sector due to:

� the fragmented nature of the industry

� the changing characteristics of the veterinary

workforce

� Introduction and expansion of the Wellness

Program

� Benchmarking of clinical standards across

practices via the practice management system

(leading to the identification of training opportunities to optimise product/service offer)

� In-house provision of more complex services to reduce external referrals outside of NVC

� Introduction of a new business unit (Management

Services and Procurement Group)

Organic Growth Growth by Acquisition

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Net Promoter Score

S T R A T E G I C U P D A T E

• Introduced Net Promoter Score surveys in NVC clinics from February 2016.

• 1,772 client responses have been received since the introduction of the surveys

• Surveys also give clients the opportunity to make suggestions to improve the clinic

Month February March April May

Company NPS Score 77.99 72.57 70.83 73.45

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Net Promoter Score

S T R A T E G I C U P D A T E

“I cannot think of anything that needs improvement! It's already sensational.” Client from Essendon Veterinary Clinic,

Melbourne, March 2016

“Truly, I can't think of anything! You're close to home, staff are kind, considerate, compassionate, knowledgeable, and taketime to answer all questions. Keep up the good work!” Client fromManningham Veterinary Clinic, Melbourne, April 2016

“We have had all our pets looked after by Mark and Peter over 20 years or more - Simba, Ninja, Bunny, Sumo and over the last9 years, our beautiful Eddie. We are thrilled with the care and service they have all received for general health, mammorycancer, knee reconstructions - best Vets ever!” Client from VetCall Ashmore, Gold Coast, April 2016

“Nothing to suggest. The reception staff and vets are all excellent.” Client from Burnie Vet Centre, Tasmania, May 2016

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National Veterinary CareE X C E L L E N C E I N V E T C A R E

Management Services & Procurement Group

Centre of Excellence

(Training Academy)NVC Clinics

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Complete Vet Systems (CVS)S T R A T E I C U P D A T E

• The CVS system is the only system in the industry that

• Accurately pinpoints what needs to be fixed in a practice

• And then systematically trains the practice to fix it

• Focuses on the customer experience. It combines technology,

business processes and training to ensure that every component

of the practice delivers exceptional customer service

• Uses a scientific personality tool to recruit the right team

member every time. Optimises team performance and happiness

by understanding the drivers for every team member

• Utilises cutting edge technology that allows regular, structured

and growth focussed• Management Meetings

• Practice Performance Reviews

• Team Meetings

• Training Workshops• Supplier Training

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Centre of Excellence T R A I N I N G A C A D E M D Y

Seminar Room.

Wet Lab.

Abaxis Microscopes. iM3 Dental Imaging Equipment. Retail Demonstration Area

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Centre of Excellence – Workshop Topics

T R A I N I N G A C A D E M Y

Workshop Topics

Dental • Understand malocclusions, radiology, client compliance and dental extractions in one day

Behaviour • An ongoing series of seminars on diagnosis and treatment of behavioural issues in small animals

Pathology • Practical skills in taking and preparing all standard cytology samples including fine needle aspirates

Imaging • Ultrasonography imaging techniques as well as reading and interpretation

Retail & Merchandising • Practical skills to achieve retail sales and to merchandise your clinic effectively

Customer Service • How to deliver exceptional customer service in a clinic setting

Human Resources• Identify the unique hazards of the veterinary workplace and develop strategies to improve the mental

and emotional health of employees

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Centre of Excellence – Participation 30 Mar – 31 July 16T R A I N I N G A C A D E M Y

Workshop Topic No. of Workshops No. of Participants

Dental 9 92

Behaviour 3 16

Pathology 1 20

Imaging 1 9

Retail & Merchandising 3 150

Customer Service 1 50

Human Resources 1 50

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Centre of ExcellenceT R A I N I N G A C A D E M Y

“Even after doing dentals for more than three decades, it’s still great to be able to learn new techniques that can

make the procedures easier and better for the patient”.

“We felt that the content of the workshop was really good, with lots of great information. The team has been able

to identify dental problems more accurately and faster since the workshop”.

“The Behaviour Workshop has improved my knowledge immensely, giving me the confidence to assist our clients

to deal with any problems they may have”.

“Absolutely loved it. I have learnt a lot and can’t wait to learn a lot more. Looking forward to getting back to work

and let my colleagues know some of the behaviour techniques Dr Cam uses and hopefully implement them into

consults and behaviour nights. Very pleased and look forward to learning a lot more”.

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Well Positioned For GrowthS T R A T E G I C U P D A T E

Growth Initiatives

Initiatives gaining

traction

• Wellness Program gaining traction with 77% of the clinics offering the program.

• Roll out of KPIs for benchmarking across the group ensuring high performance standards maintained through

growth

IT and new

infrastructure in place• Centralised financial systems and practice management systems in place to ensure scalability of the business model

Pipeline of potential

acquisitions

• Strong pipeline of potential clinics to acquire to secure growth

• Sector remains highly fragmented approximately 2,242 veterinary clinics

Supplier Agreements in

place• Agreements with suppliers finalised to ensure clinics receive favourable purchasing terms

Alignment of

management, vendors

and shareholders

• Both Management and Vendors have significant financial interest in NVC which aligns their interests with

shareholders

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Q&A

?

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Appendix

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Senior Management &

Board of Directors

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NVC Senior Management

Tomas Steenackers, Managing Director and Chief Executive Officer

� Tomas was previously the General Manager Specialty, Emergency & Pathology of Greencross Ltd. Tomas has strong

pharmaceutical, retail and pathology sector experience including Senior Management roles with Mayne Pharma, Hospira, Covidien, and Terry White Management.

Charles Foster, General Manager Operations

Katherine Baker, Chief Financial Officer

Keith Nicholls, Acquisitions Manager

Paula Sadler, Marketing Manager

� .

� Charles is a Veterinarian with 30 years of experience. He was previously the General Manager of Animal Hospitals of Australia, which was one of

the largest independent veterinary groups in Australia. Charles started his career in veterinary clinical practice. Subsequently he worked for MSD Agvet and Uncle Bens of Australia (Mars Petcare) in various management roles including technical services, product marketing and sales.

� Keith has a strong background in Mergers and Acquisitions within the dental industry. Keith is responsible for the end to end management of the

acquisition process from initial contact through to the integration of any new businesses into the NVC community.

Katherine is the CFO and Company Secretary of NVC. Katherine is an experienced Chartered Accountant with over 12 years’ experience in finance.

Katherine spent 7 years in Chartered Accounting advising small and medium enterprises in tax and financial matters before moving into the veterinary sector. Prior to NVC, Katherine spent 5 years as Financial Controller at Greencross Limited.

� Paula has worked as a Marketing professional for over 15 years. This includes time as the Marketing Manager of Animal Hospitals of Australia

and varied senior marketing management roles in both publicly listed and private companies in entertainment, sport and retail, complimented by time working in a large full service marketing agency. F

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NVC Board of Directors

Susan Forrester, Chair and Non-Executive Director

� Susan has a significant blend of commercial, financial and legal management experience gained across public and private

organisations. She is currently a Director of G8 Education Ltd (ASX:GEM), Xenith IP Ltd (ASX;XIP) and Over the Wire Ltd (ASX:OTW).

Tomas Steenackers, Managing Director and Chief Executive Officer

� Tomas was previously the General Manager Specialty, Emergency & Pathology of Greencross Ltd. Tomas has strong

pharmaceutical, retail and pathology sector experience including Senior Management roles with Mayne Pharma, Hospira, Covidien, and Terry White Management.

Wesley Coote, Non-Executive Director

� Wesley is the former CFO of Greencross Ltd and played an integral role in growing the Company from a market cap of c.$30m to

over $750m. Wesley previously worked in Chartered Accounting providing businesses advice to health, property & financial service industries.

Stephen Coles, Non-Executive Director

� Dr Coles was a Founding Executive Director of Greencross Ltd from June 2007 to January 2011. Dr Coles has been a Veterinary Specialist for over 35

years. He has owned and operated multiple practices in Melbourne before joining Greencross Ltd as one of the founding members.

Alison Sherry, Non-Executive Director

� Alison holds an MBA from University of Queensland, is a Fellow of the Australian Human Resources Institute (FAHRI) and a Member of the

Australian Institute of Company Directors. Alison is currently an Executive team member at Ranbury as the General Manager of People Operations and a Board Director RSPCA QLD.

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GlossaryT E R M S & I T S D E F I N I T I O N

Definition

Adjusted EBITDA Pro-forma EBITDA in accordance with the prospectus dated 11 july 2015 adjusted for the removal of one clinic from the initial portfolio that where settlement was not completed and for the clinic acquisition announced on 18th of september and 8th october respectively.

Adjusted Revenue Pro-forma revenue in accordance with the prospectus dated 11 july 2015 adjusted for the removal of one clinic from the initial portfolio that where settlement was not completed and for the clinic acquisition announced on 18th of september and 8th october respectively.

Clinics General practice veterinary clinics and businesses involved in veterinary services (including pet crematoria and emergency centres).

Company or NVC National veterinary care ltd ACN 009 027 178.

EBITDA Earnings before interest, income tax, depreciation and amortisation.

Initial Portfolio The portfolio of clinics which NVC had entered into contracts to acquire, in accordance with the prospectus dated 11 july 2015.

Management The management team of national veterinary care.

Wellness Program A client loyalty program providing discounted goods and services for an annual membership fee.

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